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Zhi Finance » Investment and financing, these five dimensions you must consider!

Investment and financing, these five dimensions you must consider!

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Investment and financing is not an overnight thing. It is one-sided to take income performance as the only standard to measure. A good investment needs to consider five dimensions: cost, risk, return, term and liquidity.

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How to evaluate your financial management? Many people may subconsciously think that the income is high. In fact, it is one-sided to take earnings performance as the only standard to measure.

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Investment depends on the overall pattern. In addition to income, there are several dimensions of good investment that deserve attention.


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“Cost” is the source of benefits and risks. Therefore, cost is the first dimension.

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The most important thing in financial management is to keep costs. The main purpose of many investors’ financial management is to resist the erosion of inflation on wealth.

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On the one hand, in the context of the new asset management regulations, the principal guaranteed financial products officially “exit”. It is suggested that investors should carefully read the relevant information of the products before purchasing financial products, and fully understand the risk characteristics of the products and the investment destination; On the other hand, in the context of high global inflation, it is suggested that investors should choose financial management with real yield higher than GDP to effectively fight against inflation.


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Income can be said to be the fundamental purpose of investment. The goal of investment is to obtain sustainable income stably and realize wealth appreciation.

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Different income targets are set and different risk levels are assumed. Investors can set targets according to their risk tolerance.

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In the long run, equity assets can outperform most assets. Therefore, when building the asset portfolio, it is recommended to adopt the strategy of bottoming out cash management products and strengthening equity products to make wealth become a tower and income grow steadily.

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However, investors should not blindly seek high returns, but should enhance their rational investment awareness, not be confused by the so-called high returns, and not believe that the sky will fall, so as to avoid losing their principal.


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The academic definition of risk is “uncertainty”. The market is risky, and investment should be cautious.

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Investment aims to minimize risks as much as possible, but it can also reduce risks through reasonable allocation.

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Generally speaking, the more diversified the investment varieties are, the less relevant the products are, and the less risk investors will bear. It is suggested that investors should recognize the source, type and extent of risk, match appropriate products according to their own risk resistance ability, do a good job in asset allocation and spread risk.


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The term is also the investment cycle. Theoretically, the longer the cycle, the greater the return.

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From the perspective of investors, interest is the compensation for giving up current consumption in the future.

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It is suggested that after you have identified your risk preference type, you may wish to extend the investment period and adhere to the concept of long-term principle within the risk tolerance range.

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In addition, when selecting financial products, investors are suggested to allocate funds in the short, medium and long term to achieve a reasonable capital turnover and meet expenditures at different stages.


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Liquidity is the “liquidity”, that is, the degree of difficulty in realizing an investment.

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The higher the liquidity of an investment, the greater the probability that investors can reduce losses when encountering some emergencies.

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For example, although the asset value of real estate is very high, it may not be possible to find buyers for transactions quickly, so the liquidation period is longer and the liquidity is not high.

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It is recommended that investors choose products with different liquidity according to their own actual conditions. Specifically, investors need to consider two factors, that is, the amount and time of asset realization. These two factors should be considered comprehensively, and then choose a financial product that better matches their financial objectives.

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In a word, investment and financing is not an overnight thing. Only by grasping the five dimensions of investment and financing, doing a good job in asset allocation, and diversifying risks through portfolio investment, can wealth be better preserved and increased.

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